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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta

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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta 0 -$6,300 -$7,900 1 3,200 1,800 2 3,100 6,300 3 1,900 4,900 a. Compute the profitability index for each of the two projects. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project Alpha Project Beta Profitability Index

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